In Research Mode...Holding Ourselves to the Higher Standard

Buyers may not realize it, but Sellers do not have a duty to disclose material facts about their property…however, REALTORS do. At least they have a duty to disclose material facts that they know about or might be expected to know about.

That means research. There is probably a huge segment of the population who believe that REALTORS write up Listing Agreements all willy-nilly, take a few lousy photographs, put a sign in the yard and wait for the phone to ring. Sure, we all know there are some REALTORS who do business that way, but not at MoonDancer Realty. For one, the Office Manager would never stand for it and for the other…we just aren’t built that way.

Again, I say…that means research. We’re getting ready to list a couple of properties that the Sellers honestly don’t know much about and that happens a lot. The North Carolina Real Estate Commission however, is of the opinion that the public has a reasonable expectation that licensed agents should make an attempt to research things having to do with zoning, water sources, sewage sources, rough idea of property lines and general condition issues among other things.

So, today we are in research mode. Since our fiduciary responsibilities are to our sellers and possibly our buyers that means that in order to do the best job possible for them, we’d better learn as much about the property as possible. I’ll be visiting Jackson County’s Department of Environmental Health to learn as much about the septic system and shared well as I can, the Jackson County Planning Department to see if the property can be divided and sold as two parcels and the Jackson County Clerk of Court and Register of Deeds to fill in as many blank spaces in the history as possible.

No willy-nilly here. Real estate should be a very intentional business and much as I’d enjoy attending today’s AR webinar about social media…or walking about the Town of Dillsboro with camera in hand…or reading blogs …or enjoying a three martini lunch (okay, maybe not so much that one), we’ll be doing our utmost to have the best information possible about a listing we’ll be taking the responsibility for marketing and selling…and that means research and lots of it.

We learned early on…do your research upfront, disclose EVERYTHING you can and you eliminate a lot of hassle, headaches and heartaches later.

REALTORS are held to a higher standard than their Sellers and should be. They have a duty to disclose all material facts that they know or can be reasonably expected to know…it’s a public service we take seriously.

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Unless noted otherwise, all photographs & content are my own and will only be shared with the courtesy of a written request for permission.

It's so sad tehat all agents/brokers and firms don't function with this same attitude and practice. Not only does it do justice for your seller client, but is ultimately helpful to then entire process.

Sienna does a great job running the office! I agree with the comments posted by Mike & Eve above. Love hearing How to get the job done rather than complaining. Refreshing, informative & well written post. Thank you!

Mona, I work in three jurisdictions (DC, MD and VA) and each has its own ground rules for disclosure. Whatever laws we think might allow our sellers or ourselves to keep known defects, my policy is discloure, disclosure, disclosure.

The office manager is a task master, but we wouldn't have it any other way. We could just throw a bunch of garbage into our ads and on MLS and hope someone else will sort it all out as the process plays out, but what in the heck do we get paid for if not for our knowledge and integrity.

In Texas, sellers are required to disclose material facts that they know. The problem is, sometimes they have no idea. Is the lot they want to sell large enough for a septic system? Maybe, maybe not. The only way to know for sure is to hire a licensed sanitarian to verify it. The cost is about $150.00. Personally, I would not purchase a lot without that report. If the seller does not have that report and will not pay for it. We are quick to let buyers know that they should verify with a registered sanitarian that the lot qualifies for a septic system, what kind, and how much it will cost. All septic systems are not equal. Some can be over in the 10's of thousands +. YIKES GREAT post!!

Erv, we do not fill out the form. The sellers fill out the form but they can elect to check either to disclose something or to check the "no representation" box. If they check that box and the licensed agent knows there is a material fact, we must disclose it.

Sellers are requires to disclose "known" material facts, but hard to prove knowledge of what the seller should know. So we do our due diligene as the buyers agents and recomment the inspections, etc. If you are listing you are certainly working for your sellers in that regard, Mona

Ron, what happens if it is an absentee seller? Someone who may never have lived in the house? Is there an opportunity for them to sign "no representation" on your disclosure? Wonder what kind of disclosure the lender is signing? Some sort of good faith estimate type thing? Yes, if they are disclosing something about the house...that is weird.

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